The Meta business model, subscriptions for device ownership and avoiding subscription pitfalls. That and more on today’s episode.
Want to know what’s next? Listen to the show where our experts from around the globe unpack your biggest challenges. In the final episode of this series, WGSN’s CEO Carla Buzasi takes us to London and Singapore for a deep dive into the growing popularity of tech subscription models.
Watch the full episode below or read on for highlights of this episode:
Q: What lessons can tech companies take from Meta’s decision to introduce a subscription service for verifying users?
“The company’s offering of a more personalised service will certainly please consumers while tackling its revenue streams, as spending on social media advertising declined in 2022. Subscription models can be a great tool to tech brands as they can lower entry-level costs of products and ensure consistent revenue streams, while creating better engagement with consumers via a customised approach.”
– Carol Aquino, Head of Consumer Tech, WGSN
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Q: What pitfalls should companies be aware of when adopting subscription models?
“Subscription models can be a good business model, but companies must ensure they are not stepping on consumers’ toes on their path to profits. Avoid restricting hardware functions and offer flexibility so consumers are conditioned to view easy cancellations as the true benefit of subscription models. Companies should avoid imposing fixed terms or conditions that are too long or too specific.”
– Neo Ping, Consumer Tech Analyst, WGSN
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Q: How could consumers benefit from a subscription model for device ownership?
“The place people benefit at the moment is with price predictability. We’re in the middle of a cost-of-living crisis and a subscription helps people plan ahead as they know exactly what’s coming out of their account each month. In other words, there aren’t any nasty surprises. If something goes wrong, repair costs are usually covered in the monthly fee. It also helps keep upfront costs low, letting people spread payments out over time.”
– Matt Zara, Consumer Tech Editor & Trend Forecaster, WGSN
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